Nunley Company's direct materials budget shows total cost of direct materials purchases for April $200,000, May $240,000 and June $280,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for June are

Question

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The budgeted cash payments for June include 60% of June's purchases ($280,000 * 60% = $168,000) and 40% of May's purchases ($240,000 * 40% = $96,000), totaling $264,000.

Nunley Company's Direct Materials Budget Shows Total Cost of Direct